Is a Physician “Provider Tax” the Solution to Michigan's Medicaid Woes?

HSS Journal: Volume 9 Issue 3

David C. Markel, MD,
The CORE Institute, Detroit Medical Center/Providence Hospital Orthopaedic Surgery
Residency Program, Providence Hospital and Medical Centers

Peter eJ. Sauer, JD,
Cooley LLP, Palo Alto, CA

Ralph B. Blasier, JD, MD,
Orthopaedic Surgery, OSF St. Francis Hospital and Medical Group

Abstract

Background
Michigan is facing a Medicaid budget shortfall. Evidence suggests that the underlying factors causing reliance on Medicaid and cost of treatment to increase are getting worse. A tax on Michigan physicians has been proposed by legislators to meet the budget demands of Michigan's Medicaid program.

Questions/Purposes
This paper looks at the legal basis of such a tax, studies the successes and failures of other states that have implemented similar taxes, and attempts to assess the effect this tax would have on Michigan doctors and patients.

Conclusion
With current Medicaid rules, such a tax would increase federal matching funds and potentially reimbursement rates. However, the cost of a tax on physicians would not be born equally, and there are no guarantees that the revenue would provide a funding solution.

This article appears in HSS Journal: Volume 9 Issue 3.
View the full article at springerlink.com.

About the HSS Journal

HSS Journal, an academic peer-reviewed journal published three times a year, February, July and October. The Journal accepts and publishes peer reviewed articles from around the world that contribute to the advancement of the knowledge of musculoskeletal diseases and disorders.

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